11/28/2005

The Housing Market on the Decline?

This article stated that according to the National Association of Realtors, the US housing market showed signs of cooling as sales of existing homes eased last month. This goes on to say that in the coming months, we should see the supply and demand even out. However, I wonder how long this will hold true. In Cedar City, the demand for buying housed decreases in the winter because of the cold weather and the snow, rather than the perfect weather of summer. It says that the rates are seasonally adjusted, and that would be great if the housing boom leveled out a little for those looking for buying homes, but it seems somewhat likely that the boom could hit once again next spring.

4 comments:

Bree said...

I recently read an article in the Cedar City newspaper that the housing market has a huge supply with no demand. It was published Nov. 29th so i'm assuming it was up-to-date. It would be nice to see the housing market even out but the only way of doing that is to lower the prices of homes so that people can afford to buy. That, in itself, requires alot of other components to make it happen.

Tyler said...

Based on the information that I have read, the prediction is the real-estate market is going to peek rather than decline, it’s forecasted to level off at a median price relatively close to the peeking point. I hope that what I have read is not true, because I would like to own property someday as well.

Nate said...

The market has been on the rise for so long that it was only a matter of time before it hit a peak and then began to decline. I think just about everybody wished they had entered into the market about three years ago. Cedar City's market shows signs of potential growth but there are too many new houses and not enough people to fill them.

Dr. Tufte said...

-1 on Chloe's post for spelling errors.

-1 on Bree's comment for spelling errors.

-1 on Tyler's comment for spelling errors.

My guess is that, while we may have a short-run decline, we are in line for a long housing boom. The housing stock in the U.S. is actually older than it ever has been.